Yahoo (YHOO) has been trading in a very tight range since its gap up in October last year.
Since that gap up, it has been trading between a low of $15.50 and a high $17.78
The high took place at a time when the S&P 500 was at its peak this year as well.
We can see from the chart that it has drop back below the kumo; a bearish sign.
At this moment, Yahoo (YHOO) is trading below the kumo with a possible resistance from the kumo at $16.60
I will be looking for an entry to short YHOO. A break below $15.50 will give me a target of $14.60 and ultimately, $13.00
Yahoo has been cost cutting for quite a fairly long time. Developers were laid off and a fair amount of work outsource.
As a technological company, what is Yahoo’s strength? And if it is positioning itself as a content company, it will be going against the likes of AOL.
What plus point will want see moving forward? And do shareholders believe that Carol Bartz can re-invent this company?
My personal opinion is NO.
I believe the strategy forward for Yahoo is pretty much focused on getting their balance sheet clean up and looks attractive. After which, they will be acquired and that translate to an exit strategy for the senior management.
What do you think?